What version of Premiere Elements and what computer operating system is involved?
Can I assume that the stills are on Video 2 above the video on Video 1?
If that is the case, place the Timeline Indicator on the still, click on the image of the still in the Edit area monitor to bring up the image's bounding box.
Then use one of the bounding box handles to scale the still image to fill the monitor space just to the point where the image below is not seen.
What is your project preset?
What are the properties of your source media? And, have you or the project set the project preset to match the properties of the source media?
What are the pixel dimensions of these stills that you are importing into the project?
What effect are you trying to create with these stills? Just in case message....content on the upper track will be visible, and content on a lower track directly beneath it will not unless there are areas of transparency in the upper track content. If there are areas of transparency in the upper track content, then the lower track content will show through those areas. Sounds like that is happening to you. Also, Premiere Elements represents transparency as black, not the color Black.
Please review and consider and explain further what your editing goal is here. If any questions about the questions or the above comments, please do not hesitate to ask.
Thanks ATR - you have solved my problem in that all I needed to do was find and use the bounding box handles to scale the image!
Thanks for the follow up. Wonderful news that the photo scaling suggestion worked for you.
If you have Premiere Elements 11, 12, or 13 on Windows 7, 8, 8.1, or 10 64 bit, you might want to explore
Expert workspace, fX Effects, Presets and the PiP choices (Picture in Picture presets) there...static ones as well as motion ones.
I got carried away with these PiP presets when I did the following work